Your financial independence and stability

Category Archives: Unemployment

Creditors are calling, a wallet that you got for Christmas is empty and the bank is threatening to take your house and possessions. Such a thought would cause people to have a panic attack.

However, this is the reality of many citizens who have lots of debt. While your financial circumstances may not be the best, there are steps to take toward eliminating debt.

Here are some practical tips for removing debt from your life.

1) Do not borrow what you cannot pay back

Credit cards and loans for unemployed can be a wonderful thing if used properly. Unfortunately, these items are abused by many citizens. If you are someone who maxes out your credit cards and has difficulty paying loans, these are not the best items for you to have.

It is important to manage loans and credit effectively, to eliminate the possibility of bad debt. One easy philosophy is to not borrow what you cannot pay back.

College students may have trouble doing this with student loans because they cannot foresee the future. However, adults with several credit cards and numerous loans should take extra caution before utilizing these items. It is not the bank’s fault that they gave you $10,000 for a car.

However, it is your fault if you spent that money on car gadgets and furniture and do not have any money to repay the loan. Before borrowing a lot of money, evaluate your means of income and determine if you are in a position to obtain a loan.

2) Make a payment plan attempt

Some companies work with their customers who are delinquent with payments. These companies include utilities, medical facilities, and some loan entities.

There is no reason for one to ignore these opportunities if they are offered. Payment plans will help you get rid of debt much faster instead of adding interest to unpaid charges. Interest will only increase your amount of debt and ruin your credit score.

3) Pay what you can, even if there is no plan

While payment plans are a great way to get rid of your debt, they may not always be available. This can be due to many reasons, including a past due amount that has been lingering for some time. In this circumstance, it is still important to pay at least some money toward your delinquent account.

The argument that you do not have enough money will not be sufficient. If you can amass such charges, you should be able to pay bills when they are due. When that does not happen, it is best to pay what you can in order to bring down your debt.

This will get you closer to eliminating charges and keeping creditors from harassing you all day long.

4) Do not ignore your debt

Just because you do not look at a bill does not mean it isn’t there. If you owe money to any business, the money will always be due until it is paid. Ignoring your debt is one of the worst things that you can do regarding finances.

This will definitely have a negative impact on your credit score. Your future finances may also be affected if creditors come after you in court. This can cause you to end up paying more money for taking no action toward amending your debt.

5) Keep track of your debt information

One free tip for the broke and unemployed is to collect and organize all documents pertaining to unresolved debt. This is important for two reasons. First, it will be much easier to battle unscrupulous charges that you have already paid.

You should have a statement listing these charges in addition to a document that proves any payment made to clear the debt. Secondly, keeping track of debt information will also help you determine exactly what you owe and who needs to be paid.

Apply for the food stamps anyway and get a case worker on your side. As a person with diabetes, sometimes the ‘regular’ calculations do NOT apply to you as an individual. You need a case worker and interview with SSA and an individualized assessment of your needs.

I was always told if I worked I would lose SSI bennies. No, as I am technically blind/disabled, there are ‘back to work’ programs and even when I make a lot of money some months, all it means is submitting my pay records to the SSA and 2 months later, receiving a little less money from them. But, overall, I am in a MUCH better place with a wee job, and my medical stays intact through my earning too.

Having a case worker I can call or fax helps with any big questions I may have, and she and I touch base on the phone for a review of my case every 2 years.

There may also be advocacy groups for us ‘sweet peas’ through agencies like the American Diabetes Association and JDRF (Juvenile Diabetes Federation). They should at least be able to steer you to some more help.

Thanks so much for the kind thoughts and encouragement !! I am finding that at this time in my life God has me surrounded by angels I never knew were there. I have been given ALOT of great resource information in the last few days and am going both to unemployment and DSS offices Monday to get started. I glad you are hanging in there. I have been trying to reduce my meds in hope of stretching them out but I don’t think that’s going to work for long so Monday when I go down to DSS I am going to inquire about any assistance programs that may be available in my area and may be able to help me with this too. I’m also considering a possibility to apply for cash loan online – what do you guys think? They seem to be an established and trustworthy company. Please advise.

Thanks to everyone who has been sharing not only their experiences and knowledge but also their support during these times.

Even though I keep up with everything going here it seems like I don’t get to add anything helpful other than the odd comment now and then. You all have helped me get my family through my husband’s job loss last year and now I need to ask for more advice. I live in Charlotte, NC and after 9 years my job gave us a 2 week notice that they are shutting down 3rd shift. Of course the first thing I did was approach the directors of 1st and 2nd shift…….nothing available, then I sat down to work on our financial strategy (very, very not pretty). We have exhausted ALL our excess reserves (bill cutting and reducing,emergency fund, food storage literally gone) in the last 7 months. I am now with this lay off more scared where as last time I was more anxious. Well now that all my outstanding medical bills (86,000) have been put on the very last of the list since last year and most of them are threatening action now anyway I am about ready to just throw them up in the air and let
them fall where they may.

As soon as I can get my vehicle taxes and tagged paid I will head down and apply for medical assistance as I am a diabetic and hopefully be able to qualify for that program. According to the information I researched on the web for income requirements and calculations we will not qualify for food stamps. So I was wondering was if anyone could tell me how to go about looking for food assistance in my area. I do use the angel food network (which has been a blessing) but I will not be able to get an order in for this month due to funds not available.

So again guys THANKS for all your help !!!!!

Try for food stamps anyway. Is there a community service agency in your area? They provide help with food and heating bills that I know about. They’ve also got other services but I didn’t need them or wasn’t a senior. At one point I also got food help from the United Way and from the Red Cross. Basically for all of these places you need SS numbers for each person in the household and info about your income. If there are kids under 18 in the house they may want to see birth certificates. Each agency has different requirements. when my now ex was laid off for 11 months we had to use all of these agencies because even with me working two jobs I couldn’t afford to pay the rent, the bills, and still have enough left to buy food. You will get past this.

My heart goes out to you. I usually don’t say anything. Like you, I am struggling to rebuild my life after health setbacks. And sometimes it seems that life is smacking you in the face. I know it is not easy but, I want to encourage you to stay positive. I would also check to see if there are non-profit credit counselors in your area that might intervene with your creditors. You obviously have more than you can handle right now.

Finally, I plan to say a prayer that God will bring you some much needed relief. There is only so much a family can stand. Just know that someone is thinking about you and wishing you the best.